When Is the Right Time to Hire a Controller?

Written by Carolynne Walker, Managing Director, Kasvu Inc. for Lexicon Bank
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Practical guidance for growing businesses considering their next financial leadership step
Many business owners find themselves at a crossroads: their company is growing, financial complexity is increasing, but they’re unsure if it’s time to invest in a dedicated financial controller. This decision can have profound implications for your business’s future.
The Cost of Waiting Too Long
Consider this scenario: A promising company had doubled its revenue each year, becoming a recognized leader in its market. When approached by a larger competitor about a potential partnership that could dramatically accelerate growth, the company’s President was enthusiastic.
However, when discussions advanced to the stage of sharing financial documentation, reality set in. The company’s financial records were disorganized, inconsistent, and wouldn’t withstand professional scrutiny. The President was forced to withdraw from negotiations, missing a transformative opportunity simply because they hadn’t invested in proper financial leadership earlier.
Financial Complexity Indicators
- Revenue threshold reached – While there’s no universal number, businesses typically experience a substantial increase in financial complexity once revenue exceeds $5-10 million annually.
- Diminishing financial visibility – When financial reporting becomes delayed, inconsistent, or doesn’t provide the insights needed for strategic decision-making.
- Overwhelmed accounting staff – When basic accounting functions begin to fall behind or errors increase, indicating your team needs more structure and guidance.
- External transaction preparation – Considering financing, partnerships, or acquisition opportunities that will require professional-grade financial documentation.
- Business model evolution – Adding product lines, expanding into new markets, or changing your business model creates financial complexity that requires expert management.
Common Misconceptions
Many business leaders delay hiring a Controller due to misconceptions about the role:
- “We’re too small for a Controller” – Company complexity, not just size, determines need; even smaller organizations can benefit from specialized expertise when dealing with complex transactions or regulations.
- “Our bookkeeper can handle it” – While bookkeepers excel at transaction recording, Controllers bring strategic analysis and system design that fundamentally improves financial management.
- “It’s an unnecessary expense” – Controllers often pay for themselves through improved efficiency, error reduction, and strategic financial insights that drive better decision-making.
- “We can wait until we have problems” – By the time financial issues become obvious, significant damage to reputation or opportunity may already have occurred.
Schedule time with a Lexicon Bank relationship manager today.